Ichimoku Future Trade for the Week: Soybean Oil 5 time frame buy

On May 14, 2015, we received a 5 time frame Ichimoku Buy on Soybean Oil Futures email alert.  Here is the email alert below:

May15_tradeofweek_future_email

The Daily time frame reached the major resistance which is the top of the consolidation pattern.  After that, it has been consolidating.     Therefore, we are going to use a pull back strategy to trade back to the major resistance and wait and see if it can break it.   If it breaks it, we will look for another pull back trade in the future.    We are going to setup a pull back trade on the 60m.    30m was not chosen since we are dealing with Soybean oil which can run into low volume scenario.    The blue arrow on the chart shows when we received the email.    The entry is 33.10, initial stop of 33.03, and a target of 33.44.   This gives a max. risk of 0.07 with a reward of 0.34.   This gives a reward/risk of 4:1.  This will be an aggressive trade since the higher time frames was not a time frame match.   There was a time frame match on day trading and swing trading levels.    Here is the chart setup:

May15_tradeofweek_future_chart

The trade was entered and price got to the target price.     Price eventually broke this resistance level but came right back into the consolidation pattern which is not good.    After it broke the resistance, a multiple time frame support level got established above the breakout resistance.

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About the Author Manesh Patel